If a Good Has Become More Scarce,then We Know for Sure

question 48

Multiple Choice

If a good has become more scarce,then we know for sure that

• A)the demand for it increased.
• B)the supply of it decreased.
• C)either the demand for it increased or the supply of it decreased.
• D)both the supply of it and the demand for it decreased.

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Definitions:

Total Cost Variance

The difference between the budgeted or standard cost of an activity and its actual cost.

Direct Labor

Costs associated with the employees who are directly involved in the production of goods or services, such as wages for factory workers.

Rate Variance

The difference between the actual rate paid for something and the standard or expected rate, often used in budgeting and cost management.

Time Variance

The variance between the real duration it takes to finish a task and the initially projected time for its completion.